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ITEM: |
CONSENT
CALENDAR |
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5. |
REVIEW AND ACCEPT
INDEPENDENT AUDIT REPORT FOR FISCAL YEAR 2009-2010 |
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Meeting
Date: |
January 27, 2011 |
Budgeted: |
N/A |
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From: |
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Program/ |
N/A |
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General
Manager |
Line Item No.: |
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Prepared
By: |
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Cost Estimate: |
N/A |
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General Counsel Review: N/A |
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Committee Recommendation: The Administrative Committee reviewed this item on January 19, 2011 and recommended approval. |
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CEQA Compliance: N/A |
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SUMMARY: Drafts of the Financial Statements and Independent Auditors’ Report (Report) and Board Disclosure Letter for the fiscal year ending June 30, 2010, have been received from the District’s external auditors, Hayashi & Wayland. The documents have been distributed under separate cover to the Board and are available for public review at the District office. The Report will also be posted on the District’s website after it has been approved by the Board. This was the first year of a three-year agreement with Hayashi & Wayland to audit the District’s financial records.
The auditors have issued a clean opinion on the financial statements. The statements show that revenues for the year totaled $6,294,695 and expenditures were $6,625,278, resulting in a deficit (use of reserves) of $330,583. This actual use of reserves compared to the budgeted deficit of $777,400 for funding the Aquifer Storage and Recovery (ASR) Project on a pay-as-you-go basis. The District’s net assets increased by approximately $109,372 during the year, largely due to capitalized expenditures for the work completed on the District’s second well for its ASR Project. The Administrative Committee met with representatives from Hayashi and Wayland and reviewed the Auditors’ Report and the Board Disclosure Letter at its January 19, 2011 meeting.
A Management Letter may be issued in conjunction with the Report to offer constructive suggestions for improvements on matters that came to the auditors’ attention in connection with the audit. A Management Letter was not deemed necessary by Hayashi & Wayland in connection with the audit for this fiscal year.
RECOMMENDATION: District staff recommends that the Board review and accept the Financial Statements and Independent Auditors’ Report for the year ending June 30, 2010. The Administrative Committee reviewed draft report January 19, 2011 and voted 2 to 0 to recommend approval of the staff recommendation.
None
U:\staff\word\boardpacket\2011\20110127\ConsentCal\05\item5.doc